Man Pleads Guilty to Mail Fraud in $54.4 Million Investment Scheme

A man pleaded guilty to mail fraud in an investment scheme that resulted in losses exceeding $54.4 million. The man, who was president of Woodhill Capital Corporation, solicited funds from investors in Western New York and other areas. Investors were told their money would finance loans to businesses buying commercial equipment, promising returns of 14% or more.

The scheme was fraudulent because the money solicited from investors was not used for the described business loans. Instead, the funds were used by the president to cover payments owed to earlier investors, creating false equipment-financing agreements.